A new federal report finds that record-keeping failures by the Education Department may have left thousands of Americans stuck with student debt that should have been forgiven.
In a CNBC/Harris Poll survey of older Millennials , 40% still had half their student loan balance or more left to pay. CNBC's Megan Leonhardt explains the survey results and which life decisions millennials had to delay because of the debt.
It also blamed the agency for failing to tell borrowers that they can request an update on their progress toward loan forgiveness. The number of loans eligible for forgiveness through the program is expected to balloon in coming years, according to the GAO . By 2030, the office estimates, up to 1.5 million loans held by 600,000 borrowers could meet the conditions for forgiveness.
Cordray agreed to a list of changes recommended by the GAO. He said his agency will identify and correct record-keeping errors, and will create a system to let borrowers check their progress toward loan forgiveness online, among other changes. Borrower rights advocates applauded the changes but also called for broader improvements to the program, which has long been criticized for being overly complex. Democrats in Congress have urged the department to replace existing income-driven repayment plans with a single, more generous plan.
The latest action is part of the Biden administration's piecemeal attempt to reduce the burden of student debt. The Education Department has taken action to make it easier to get loan forgiveness through other programs, including one for public servants and another for students who are defrauded by their colleges.
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